Set in Germany just before and during the Third Reich, Friedrich begins in 1925 with the births of the two protagonists, Fritz and Friedrich. The narrative then follows the events leading to Hitler's installation as chancellor of the German Reich in 1933, recounts Hitler's treatment of Jews as it affects the novel's characters, and ends in 1942 when all the Jews still in German concentration camps are transferred to the Auschwitz extermination camp.

The novel mentions no specific town, but the setting appears to be a representative suburb of a large city. Most of the residents know each other, and many townspeople know where Friedrich lives and that he is Jewish even before the government forces Jews to wear identifying yellow stars. Friedrich is expelled from school, cursed on the town streets, and barred from the swimming pool and theater because he is Jewish. When Friedrich appears in court, however, the...